How big is Lidl in each respective country? What is its market share? How big will the retailer become?
How high are Lidl’s and Kaufland’s sales densities? Which are the most successful markets? In which markets is Lidl stronger than Aldi?
Where is the discounter furthest ahead in changing customer perceptions - moving its brand image from low cost to quality and freshness?
Where is the retailer most innovative with store refreshes? Will we see a convenience fascia stretched over two floors? What are Lidl’s plans to propel the outlet forward? What changes is the retailer making in store to drive greater footfall, increase loyalty and frequency?
How big are sales uplifts generated by store updates on average?
How much do fresh ranges account for in Lidl? How is this different from market to market?
What is happening with Lidl’s US expansion?
How big is Lidl’s online operation in Germany? Is this a blueprint for the rollout in the other markets? How does Lidl manage the transition to becoming multichannel?
What is the percentage of FMCG A brands of total SKUs in Lidl? Is this different from market to market?
What is Schwarz private label strategy? What is the main driving force behind vertical integration at Lidl? Unique private label? Cost benefits? Secure supply?
What are the key benefits of Lidl’s international sourcing strategy? Where does this fall short? What about Deluxe?
How much crossover is there between the two businesses, Kaufland and Lidl? How will this change in future?
What are the key differences to Aldi?
What innovative promotions, pricing strategies, store formats, expansion strategies and brand extensions will the discounter go for next? How big is Schwarz’s pledged investment for 2015?
KAUFLAND: KEY QUESTIONS
Is Kaufland the future of the hypermarket?
How does Kaufland manage the introduction of small scale private label new product developments? Why is shopper insight crucial at Lidl but not to the same extent at Kaufland? What exactly is the concept of Warendruck?
How big is Kaufland in each respective country? What is its market share? How big will the retailer become? How many stores will the retailer operate from in Germany? What about the CEE operations?
Why can Kaufland generate sales in locations others can’t? How can the retailer take over disused Karstadt buildings or beached whales of the competition and make them work?
What is the future location for Kaufland, is it the inner city? Will it compete with Lidl?
Why has there been a slowdown in Germany at Kaufland in 2014? What is the retailer doing about it?
What are the plans for Kaufland?
How does Kaufland reduce its input costs? How is the hypermarket leveraging its scale in the supply chain to drive efficiencies through? Is this a model for other markets? Is it a model for Lidl? By how much can the retailer reduce prices by leveraging its scale in the supply chain?
What percentage share will Schwarz take of retailing in its respective markets?
What does the German example suggest?
Introduction: the concept p24
Concept: product centricity, relentless process optimisation p25
Concept: modernising one single format, internationalisation, buying power p26
Concept: online, Schwarz is Germany’s and Europe’s biggest retailer p27
A winning format: The Discounter – success factors p28
The context: EU Grocery Retailing in 2014 p29
Grocery sizes: EU 27, 2009-2013 in ‘000 €bn, e p30
Grocery sizes: shoppers cut back, shop around and go to hard discounters p31
Grocery sizes: EU 27, 2008-2013 growth in % p32
Grocery sizes: EU 27 growth 2008-13 in % p33
Grocery per capita sizes: EU 27 in 2013 in €, from Finland to Bulgaria p34
Hard discounters: Lidl in 2015 p35
Lidl: the copy cat overtaking Aldi, the original p36
Lidl: the brands equilibrium, Kaufland the growth driver in CEE p37
Lidl: OSA, Warendruck, operational independence for Lidl and Kaufland – until now? p38
Lidl: category management, Kaufland the most successful EU hypermarket operator p39
Lidl: always the second mover, threat to Tesco, more potential for Kaufland p40
Lidl: all about expansion, solely focused on Europe p41
Recent developments: Lidl in 2014 p42
October 2013: first UK TV advert, Slovakia, Switzerland, Sweden, DE and Be expansions p43
Nov/Dec 2013: recipe generator, Finnish expansion, Italian conversion p44
January 2014: successful Christmas, health innovation in UK checkouts p45
Jan/Feb 14: Coca-Cola delisting, Italian promotion, home-grown Swedish tomatoes p46
March 2014: Irish gains, change at the top, DHL contract extension, Swedish trial p47
March/April 14: expansion, store format innovation, £220mn UK expansion drive p48
July 2014: Lidl UK reveals tax bill for first time, pop ups in Belgium p49
July 2014: Lidl to enter Australia? p50
August 2014: new fashion range launch in UK p51
August 2014: Danish expansion, modernising UK marketing, Now or Never in NE p52
September 2014: first UK brand campaign, ninth distribution centre p53
September 2014: e-commerce debut in NE, h&b added to German online store p54
October 2014: expansion in Sweden, Lidl mocks Sainsbury’s and Morrisons p55
November 2014: UK Christmas advert, menswear, Netto’s return, new store format p56
November 2014: Lidl’s toy offer for Christmas rush, Northern Ireland expansion p57
December 2014: Lidl launches Deluxe online in Spain p58
Financials and KPIs: Lidl in 2014 p59
Schwarz: sales 2008-13, growth, domestic share of total, LFL growth p60
Schwarz: Germany’s biggest retailer – and on track to become the EU’s p61
Lidl: the synergy challenge, structural efficiency rather than widening the ranges p62
Schwarz: benchmarks, sales, stores, space, average space, sales densities in 2013 p63
Lidl: the most internationalised retailer in the EU p64
Lidl: countries, benchmarks, net sales, stores, space, sales densities in 2013 1/2 p65
Lidl: countries, benchmarks, net sales, stores, space, sales densities in 2013 2/2 p66
Lidl: tackling the 10,000 stores barrier again, 10 million sq m under the Lidl banner p67
Lidl: Germany p68
Lidl: adjusting the store estate in Germany, clear KPIs p69
Lidl: recycling old sites, stretching footprints in Germany p70
Lidl: stopping self cannibalisation in Germany p71
Lidl: international markets p72
Lidl: 2014, sales per country in €m, market shares of total grocery universe in % ½ p73
Lidl: 2014, sales per country in €m, market shares of total grocery universe in % 2/2 p74
Lidl: France p75
Lidl: France, private label “Saveurs des nos Regions” frenchifies the discounter p76
Lidl: French wine, German beer, HQ move, advertising campaign p77
Lidl: every store renovation in France generates a sales increase of 30-40% p78
Lidl: UK p79
Lidl: Lidl momentum disrupting grocery order in the UK p80
Lidl: wider choice, store design improvements p82
Lidl: creative marketing p83
Lidl: UK, fresh accounts for 40%, 40 stores to follow in 2014 p84
Lidl: Italy p86
Lidl: ”Italianisation” of Lidl Italia p87
Lidl: Spain p89
Lidl: a market of growing importance p90
Lidl: launching Deluxe online, staying through the tough times p91
Lidl: extension of fresh, regional suppliers p92
Lidl: other countries p93
Lidl: 30 new Polish stores, €100m Finland investment, Danes trying something new p94
Lidl: Switzerland – market entry lowering price points of the entire retail universe p95
Lidl: Switzerland – waiting for the second DC p96
Lidl: location, format and expansion strategy p97
Lidl: revamping the store format towards a convenience fascia, focus on fresh and food p98
Lidl: low branded SKU count, the cash desk innovation p99
Lidl: drawbacks of the new model, analysis, cost drivers, space considerations p100
Lidl: optimising check out p101
Lidl: tunnel scanners in Sweden p102
Lidl: self checkout in UK, healthy food check outs p104
Lidl: new store formats p105
Lidl: new formats in Belgium, outlet store and inner city convenience p106
Lidl: climate friendly store in Brussels translates into huge operational savings p107
Lidl: online relaunch p108
Lidl: online operations, huge branded non food presence online, international p109
Lidl: tackling the non food issue, easier at Lidl than at Kaufland p110
Lidl: online relaunch in Germany, coffee world, wine, pet foods, nappies etc p111
Lidl: online turnover figures in Germany p112
Lidl: online health & beauty launch, private label and FMCG A brands, multichannel p113
Lidl: the future potential, h&b online p114
Dia: the first discounter to launch a click & collect service p115
Dia: cheaper than in store, faster than drives and €30 average baskets p116
Dia: catering to pedestrians, trial widened out, France only for now p117
Lidl: brands in discounters p118
Lidl: going soft and widening the SKU count – up to a degree p119
Lidl: core strength of private label proposition, a clear limit for brands p120
Lidl: private label segmentation and vertical integration as key strategic objective p121
Lidl: the premiumisation strategy p122
Lidl: the Coca Cola wars in Germany, delisting … for a few days p123
Lidl: Coke losing €150mn in sales through the boycott, Lidl losing shoppers p124
Lidl: the Coca Cola wars and Lidl’s warning to FMCG p125
Lidl: Pan-European promotion on premium wines, €349 per bottle p126
Lidl: range extension into wine – going for premium and luxury p127
Lidl: wine driving footfall to online, becoming multichannel, copying Aldi’s playbook p128
Lidl: using toys as footfall draw and to shift quality perceptions p129
Lidl: cleaning up promotional activity, Deluxe reigned back p130
Lidl: concentrating on the fastest sellers, cost of Deluxe missteps p131
Lidl: vertical integration p132
Lidl: vertical integration achieved in soft drinks, WIP in confectionery, the PET system p133
Lidl: vertical integration in fruit and vegetables, DCs built, owned and run by Lidl p134
Lidl: even bigger suppliers completely out of capacity when dealing with Lidl p135
Lidl: expansion to the US p136
Lidl: plans shelved due to new board composition p137
Lidl: plans shelved p138
Lidl: outlook & forecasts p139
Schwarz: one format at a time, cost control, lean processes, reduced complexity p140
Schwarz: online threat, website as a template for the future, drive solution potential p141
Lidl: €4.0bn expansion investment, renewing half the store network p142
Lidl: the expansion opportunity, strengthening the core, the EU’s biggest retailer p143
Kaufland: the stand out hypermarket operator in the EU p144
Kaufland: Schwarz’ best innovation? Saturation in Germany? p145
Kaufland: SKU range, private labels, online retailing, 30th anniversary p146
Recent key developments: Kaufland in 2014 p147
Oct 13 – Nov 14: domestic ad campaign and activities abroad p148
Financials and KPIs: Kaufland in 2014 p150
Kaufland: countries, benchmarks, sales, stores, space, sales densities in 2013 p151
Kaufland: sales slowdown in Germany, process optimisation, change management p152
Kaufland: process re-organisation leads to staff disquiet p153
Kaufland: still in much better shape than the competition p154
Kaufland: 2014, sales per country in €mn, market shares of total grocery universe in % p155
Kaufland: Czech Republic and Romania, shrinking the store size p156
Kaufland: Poland, Slovakia, Bulgaria and Croatia p157
Kaufland: location, format and expansion strategy p158
Kaufland: store modernisation p159
Kaufland: experimenting with self check out and updating the format p160
Kaufland: continued expansion in Germany, aiming for 800 stores p161
Kaufland: looking east once again p162
Kaufland: betting on the future of the hypermarket p163
Kaufland: continued expansion around DC and integrated production facilities p164
Kaufland: taking the competition’s duds and opening completely new sites p165
Kaufland: private label, vertical integration and logistics strategy p166
Kaufland: K-Classic, a hugely successful private label line, vertical integration p167
Kaufland: network effects between Kaufland and Lidl p168
Lidl/Kaufland: supplier relationships, no traditional category management p169
Lidl/Kaufland: benefits of the sourcing model, supply chain collaboration p170
Kaufland: launching a private label product at Kaufland, simplicity, simplicity, simplicity p171
Kaufland: logistics strategy p172
Kaufland: the logistics secret, the potential of the return trip, eradicating empty runs p173
Kaufland: higher capacity utilisation and lowering overall costs, supplier collaboration p174
Kaufland: outlook & forecasts p175
Kaufland: reason behind the success, slow and steady adaptation, first class execution p176
Kaufland: synergies across Lidl and Kaufland, board exits p177
Kaufland: kick-starting domestic growth, expansion, new formats p178